February 20, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security
It almost seemed like a throwaway line at the end of the Liberal Party's 2019 election platform, in a section on proposed approaches to security: “To ensure that Canada's biggest and most complex defence procurement projects are delivered on time and with greater transparency to Parliament, we will move forward with the creation of Defence Procurement Canada.”
Little was said about the proposal during the election campaign, but in the mandate letters to ministers that followed, National Defence (DND), Public Services and Procurement (PSPC), and Fisheries, Oceans and the Canadian Coast Guard were tasked with bringing forward options to establish Defence Procurement Canada (DPC), a priority, the Prime Minister wrote, “to be developed concurrently with ongoing procurement projects and existing timelines.”
Whether DPC would be a department, standalone agency or new entity within an existing department isn't clear. Nor is it apparent how the government would consolidate and streamline the myriad procurement functions of multiple departments.
Jody Thomas, deputy minister of National Defence, acknowledged as much during an address to the Canadian Global Affairs Institute (CGAI) Jan. 29 when asked about DPC progress.
“I don't know what it is going to look like ... We're building a governance to look at what the options could be and we are studying what other countries have done,” she said, noting that a standalone agency outside the department of defence has not necessarily worked particularly well in other countries. “Everything is on the table. We're looking at it, but we haven't actually begun the work in earnest.”
The idea of moving defence procurement under a single point of accountability is hardly new. Alan Williams, a former assistant deputy minister of Material (Adm Mat), made the case for a single agency in a 2006 book, Reinventing Canadian Defence Procurement. And the Canadian Association of Defence and Security Industries (CADSI) issued a report in 2009 calling for a “separate defence procurement agency reporting through a single Minister ... [to] consolidate procurement, industrial, contracting and trade mandates into one new department, like a Defence Production Department, reporting to a minister.”
More recently, an interim report on defence procurement by the Senate Committee on National Defence in June 2019 argued that “a single agency could simplify the complex procurement governance framework. Serious consideration could also be given to empowering project officials and making the Department of National Defence the lead department.”
Williams remains a strong proponent. In a presentation to a CGAI conference on defence procurement in the new Parliament in late November, he greeted the DPC decision with a “hallelujah,” pointing to the high cost created by overlap and duplication when multiple ministers are involved in a military acquisition decision, and the tendency to play the “blame game” when delays or problems arise and there is no single point of accountability.
But he cautioned that the initiative would falter without better system-wide performance measures on cost, schedules and other metrics. “If you don't monitor and put public pressure on the system, things will [slide],” he said.
Williams also called for a defence industrial plan, backed by Cabinet approval, to help identify where to invest defence capital, and “a culture that recognizes and demands innovative creativity, taking chances.”
Other former senior civil servants, many with decades of experience in public sector organizational reform, were less optimistic about the prospects of a new agency or departmental corporation.
“There is always a good reason why things are the way they are,” said Jim Mitchell, a research associate with the Graduate School of Public and International Affairs at the University of Ottawa and part of massive reorganization of government departments undertaken by Prime Minister Kim Campbell during her brief tenure in 1993.
“If you want to change things, you first have to understand, why do we have the current situation that we have in defence procurement and who are the people who have a major stake in the status quo and why? If you don't understand that, you are going to get into big trouble,” he warned the CGAI audience of government and industry leaders.
At a time when the departments are moving a record number of equipment projects, including CF-188 Hornet replacement, through the acquisition process under the government's 2017 defence policy, any restructuring could significantly delay progress.
“Organizational change is always disruptive, it's costly, it's difficult, it's hard on people, it hurts efficiency and effectiveness of organizations for a couple of years at minimum,” said Mitchell. “It is something you do very, very carefully.”
It's a point not lost on CADSI. “The sheer scale of the change required to make DPC real should give companies pause. It could involve some 4,000-6,000 government employees from at least three departments and multiple pieces of legislation, all while the government is in the middle of the most aggressive defence spending spree in a generation,” the association wrote in an email to members in December.
A vocal proponent of improving procurement, it called DPC “a leap of faith,” suggesting it might be “a gamble that years of disruption will be worth it and that the outcomes of a new system will produce measurably better results, including for industry.”
Gavin Liddy, a former assistant deputy minister with PSPC, questioned the reasoning for change when measures from earlier procurement reform efforts such as increased DND contracting authority up to $5 million are still taking effect.
“You really need an extraordinarily compelling reason to make any kind of organizational change. And every time we have attempted it ... it takes five to seven years before the organization is up and standing on its feet,” he told CGAI. “If you want to do one single thing to delay the defence procurement agenda...create a defence procurement agency. Nothing would divert attention more than doing that.”
While few questioned the need for enhancements to the defence procurement process, many of the CGAI participants raised doubts about the logic of introducing a new entity less than three years into the government's 20-year strategy. Thomas described a number of improvements to project management and governance that are already making a difference.
“The budgeting and project management in defence is really extraordinarily well done. If I am told by ADM Mat they are going to spend $5.2 billion, then that is what they spend. And we have the ability to bring more down, or less, depending on how projects are rolling,” she explained. “We are completely transparent about how we are getting money spent, what the milestones are on projects ... The program management board is functioning differently and pulling things forward instead of waiting until somebody is ready to push it forward.”
“And we are working with PSPC. I think it is time to look at the government contracting [regulations], how much we compete, what we sole source, the reasons we sole source. I think there is a lot of work there that can be done that will improve the system even more.”
https://www.skiesmag.com/news/new-defence-procurement-agency-would-be-disruptive-costly
July 14, 2021 | Local, Naval
OTTAWA — The Royal Canadian Navy is launching its long-anticipated push to replace Canada’s beleaguered submarine fleet, setting the stage for what will almost certainly be an extremely controversial. . .
April 22, 2020 | Local, Aerospace
OTTAWA — COVID-19 is presenting another challenge to Canada's long-running and tumultuous effort to buy new fighter jets. The federal government last summer launched a long-awaited competition to replace the Royal Canadian Air Force's aging CF-18s with 88 new fighter jets at an estimated cost of $19 billion. The move followed a decade of controversy and mismanagement by various governments. The three companies still in the running are supposed to submit their bids at the end of June and, despite the pandemic, the federal procurement department insisted in an email to The Canadian Press that it still expects them to meet that deadline. The three companies vying for the lucrative contract are Lockheed Martin and Boeing from the U.S. and Sweden's Saab. Lockheed Martin builds the F-35 while Boeing is pitching its Super Hornet and Saab is offering its Gripen jet. Yet while representatives for the three companies say they are likewise plugging away at their respective proposals, a senior Boeing executive left the door open to asking the government for an extension as COVID-19 forces the company to adjust how it does business. "It's challenging, there's no question about it," Jim Barnes, the Boeing executive responsible for trying to sell the company's Super Hornet jet to Canada, said in an interview on Tuesday. "We want to make sure we put the most competitive offer on the table for the government of Canada to evaluate and we feel like we can put a very compelling offer. If we feel like we don't have time to finalize that competitive offer ... we would certainly ask for an extension." The government has already approved one extension to the competition since it was launched last July. Companies were supposed to submit their final bids at the end of March, but were given three more months after Saab asked for more time. Boeing continues to work closely with the U.S. government and navy on its bid and hopes to meet the current deadline, but Barnes said the pandemic has slowed things down as many staff work from home on a complex project with significant security considerations. "Then you have to take into consideration the health of your subject-matter experts in those areas where there are just a few people that can really work up those responses," he said. "Those kinds of things we're dealing with. I'm not sure if the other teams are dealing with that, but we are monitoring that and if we feel like we can't meet the deadline, we'll certainly consider an extension request as an option." Representatives for Lockheed Martin and Saab were more confident in being able to meet the current deadline. "Lockheed Martin remains prepared to provide a comprehensive proposal for Canada's future fighter capability project competition," Lockheed Martin Canada chief executive Lorraine Ben said in a statement. "We have not requested an extension of delivery for the FFCP preliminary proposal and we are excited to share more about the F-35's ability to strengthen and modernize defence, enhance ally partnerships and contribute to economic growth in Canada." Saab Canada president Simon Carroll expressed similar sentiments, saying in an interview that while there some challenges in preparing a bid during a pandemic, "we're certainly working towards that and are planning at this point in time to submit in accordance with that deadline." Yet there are also questions about the government's ability to move ahead on the project even if the companies do get their bids in on time, given the majority of federal employees are working at home. "Those submissions are going to have a combination of sensitive and classified information, and handling all that with a workforce, the majority of which is working from home, is going to be more difficult," said defence analyst David Perry of the Canadian Global Affairs Institute. "I think as a basic bottom line, it is completely illogical to think that the impacts of COVID-19 won't be running through the entire suite of defence procurements because you can't work as efficiently with a huge chunk of your workforce at home." This report by The Canadian Press was first published April 21, 2020. https://www.richmond-news.com/covid-19-latest-hurdle-in-canada-s-long-road-to-buying-new-fighter-jets-1.24121637
March 9, 2023 | Local, Aerospace, Other Defence
March 9, 2023 – Ottawa, Ontario – National Defence / Canadian Armed Forces As the international security environment changes, the Government of Canada is continually working to equip our Canadian Armed Forces (CAF) personnel with the tools that they need to protect Canada. To that end, as outlined in Canada’s defence policy, we are increasing our defence investments by over 70 percent between 2017 and 2026, and we are making additional targeted investments in continental defence and other priority areas. Today at the Ottawa Conference on Security and Defence hosted by the Conference of Defence Associations Institute, Defence Minister Anita Anand updated industry partners, stakeholders, and defence experts on our work to protect Canadians, by announcing that Canada will be acquiring Portable Anti-X Missile systems, Counter Uncrewed Aircraft Systems, and Air Defence Systems as Urgent Operational Requirements (UORs). The urgent procurement of these capabilities will improve the self-protection of military members deployed in Eastern Europe as part of Operation REASSURANCE. The Portable Anti-X Missile systems (PAXM) – Urgent Operational Requirement project will provide PAXM systems including missiles, simulators and associated support to empower the CAF personnel deployed with the Canada-led multinational NATO enhanced Forward Presence Battle Group Latvia with training and the capability to destroy main battle tanks. As part of this streamlined procurement process, it is expected a Request for Proposal will be issued in the coming months with a contract award in mid-2023. The Counter Uncrewed Aircraft System – Urgent Operational Requirement (CUAS UOR) project will provide a CUAS capability that will provide protection measures against hostile Class 1 UAS for CAF personnel deployed in the Operation REASSURANCE theatre of operations. A Request for Information was issued on March 2, 2023. The project will be executed with a phased implementation approach. A contract award for Dismounted Equipment and Fixed Site Systems is estimated for Fall 2023. A contract award for Vehicle Mounted, Fully Integrated Systems is estimated for early 2024. The Air Defence – Urgent Operational Requirement (AD UOR) project will acquire a soldier portable Very-Short Range Air Defence System (VSHORAD) for the NATO enhanced Forward Presence Battle Group Latvia in order to defeat attack aircraft and Class 1 UAS within its area of operations. A Request for Information is expected to be issued in March 2023 and a Request for Proposal is expected during Summer 2023. The timeframe for contract award is currently estimated for early 2024. Minister Anand also announced today that Canada has awarded a contract for the Redwing space domain awareness microsatellite project, valued at $15.8 million. Through this project, the Department of National Defence (DND) is investing in research and development to monitor objects orbiting Earth with a new agile microsatellite designed, built, and operated in Canada. To help reduce future risks to Canada’s space infrastructure from space debris or human-caused interference, the Redwing microsatellite will monitor objects in congested orbits and will be able to record and transmit tracking data from anywhere in its orbit. Redwing will also be able to take images of nearby space objects and monitor space objects performing unexpected maneuvers. The Redwing project is directed by Defence Research and Development Canada (DRDC) with design, manufacturing, and operations led by Magellan Aerospace (Winnipeg, Manitoba). The ground stations will be located in Inuvik, Northwest Territories, and Happy Valley Goose Bay, Newfoundland and Labrador. The design phase is expected to be complete by fall 2024 with the microsatellite built and tested by 2026. Launch is planned for late 2026. Finally, Minister Anand invited attendees, other stakeholders, and all Canadians to participate in ongoing consultations for Canada’s Defence Policy Update (DPU). The DPU builds on Canada’s defence policy Strong, Secure, Engaged (SSE) and will help ensure that the CAF is able to meet any threat in the changed global security environment. Canadians are invited to contribute to the consultations through a new web form where they can provide comments and feedback in response to the DPU’s focus areas until April 30, 2023. Since the announcement of the review of Canada’s defence policy in Budget 2022, DND has undertaken targeted engagements with Canadian industry leaders and Canadian defence and security companies, Canadian defence and security experts, including academics, Members of Parliament and Senators, and Indigenous leaders. Internationally, DND has also engaged with Allies and partners, including NORAD, Five Eyes, and NATO– many of which are also undergoing similar review processes. Quotes “As our world grows more complex, we are making the necessary investments to modernize the Canadian Armed Forces with the equipment that its members need to keep Canadians safe. Modernization is a team effort, and that is why we are working concurrently to update Canada’s defence policy in consultation with industry partners, experts, and Canadians. We are continuing to build a modern military that can protect our country from a range of new and emerging threats.” The Honourable Anita Anand, Minister of National Defence Quick facts Following Russia’s illegal invasion of Ukraine, an analysis of the Canadian Armed Forces’ urgent needs led to the designation of air defence, counter-uncrewed aircraft system, and anti-tank weapon system capabilities as Urgent Operational Requirements (UOR) for the Canadian Armed Forces. The UOR is a procurement mechanism that can be used to procure essential equipment on an accelerated timeline. The Redwing research and development microsatellite will perform space domain awareness observations of Earth-orbiting space objects in low-earth orbit , geosynchronous orbit and near Cislunar altitudes with a view toward protection of Canada’s space infrastructure. DRDC will direct operations with Royal Canadian Air Force support through 3 Canadian Space Division. The initiative is funded by DRDC, using the Canadian Safety and Security Program call for proposal competitive contracting mechanism through Public Services and Procurement Canada. On March 9, 2023, Minister Anand announced the opening of Defence Policy Update (DPU) consultations to all Canadians. https://www.canada.ca/en/department-national-defence/news/2023/03/minister-anand-updates-national-defence-stakeholders-on-progress-to-modernize-the-canadian-armed-forces-for-tomorrows-security-challenges.html